Non-Linear Effects of Information Systems Innovation

This study investigates the impact of innovation on users of an evolving Information Systems (IS) product. Building on two different streams of research, Levitts (1980) Total Product Concept and the Three Factor theory (Kano. 1984) this study identifies three types of innovation: Basic, Expected and Augmented. The impact of introducing these innovations on user satisfaction was found to be dependent on the level of user satisfaction (performance) before the innovations were introduced and the type of innovation. Basic innovations impacted user satisfaction positively when the current level of performance of the IS product was low but not when the current level of performance was high. Expected and Augmented innovations impacted user satisfaction when the current level of performance was high but not when the current level of performance was low. This finding has interesting implications for practice and future research.